JERUSALEM/RAMALLAH (Reuters) - Israel and the Palestinians remain far apart over terms of any peace deal, officials from both sides made clear on Wednesday, a day after talks resumed in Washington for the first time in nearly three years.Full story

JERUSALEM (Reuters) - Israel has blocked the European Union from aiding tens of thousands of Palestinians in the West Bank, in retaliation for an EU ban on financial assistance to Israeli organizations in the occupied territories. Full story

New labeling rules from the European Union could endanger the latest attempts at Middle East peace. Israel has reacted angrily to an EU instruction not to put "Made in Israel" on things produced in Jewish settlements in the West Bank - because the settlements are illegal.

Thousands of Palestinians - among them masked gunmen - took to the streets of the West Bank for the funeral of a prisoner who died in an Israeli jail. His family says he was tortured while Israel claims it was a heart attack in what threatens to becomes a new uprising. ITV’s John Ray reports.

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Palestinian children play near a section of the controversial Israeli barrier in Shuafat refugee camp in the West Bank near Jerusalem July 29, 2013. Israeli and Palestinian officials put forward clashing formats for peace talks due to resume in Washington on Monday for the first time in nearly three

Netanel, an Israeli Jewish settler waits as two friends come to visit him in a field at the unauthorised Jewish settler outpost of Havat Gilad, south of the West Bank city of Nablus July 29, 2013. Israeli and Palestinian officials put forward clashing formats for peace talks due to resume in Washin

Netanel, an Israeli Jewish settler, opens the door to his home for a friend in the unauthorised Jewish settler outpost of Havat Gilad, south of the West Bank city of Nablus July 29, 2013. Israeli and Palestinian officials put forward clashing formats for peace talks due to resume in Washington on M

Netanel, an Israeli Jewish settler, works with his sheep near his home in the unauthorised Jewish settler outpost of Havat Gilad, south of the West Bank city of Nablus July 29, 2013. Israeli and Palestinian officials put forward clashing formats for peace talks due to resume in Washington on Monday